The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
LONDON, United Kingdom — When Britain's lockdown finally ends, people wishing to spend will likely have to head to out-of-town malls first rather than their local shopping streets.
In news that could put further pressure on Britain’s struggling downtown retail districts, Next Plc and Dixons Carphone Plc said they plan to reopen their larger stores first.
These outlets, mostly outside urban centres, can be reopened more easily as they have more space for social distancing and large parking lots to accommodate customers waiting to shop. Bigger stores typically stay open longer, too, reducing the number of customers at any one time.
Clothing chain Next will “be better able to manage and monitor safety measures in a small number of large stores, than a large number of small stores,” Chief Executive Simon Wolfson said in a statement.
ADVERTISEMENT
Britain’s retailers are preparing blueprints for reopening stores that have been shut since mid-March amid the coronavirus pandemic.
As lockdown effects linger, the impact on business will be greater than initially expected, Next said. Full-price sales could fall as much as 40 percent this year, it said, and even in a best-case scenario, they’ll be down 30 percent. The shares traded 1.7 percent lower at midday in London.
Some retailers, which typically operate on small margins, may decide not to reopen all of their shops when the lockdown ends. Stores that are difficult to operate profitably and safely will be in focus, with smaller shops in central districts particularly vulnerable.
John Lewis Parternship Plc is keeping its plans under review, a spokeswoman said, after UK media reports that the retailer is considering whether it needs to reopen all 50 of its department stores once the lockdown ends.
Even before the pandemic, central retail districts were struggling to survive as foot traffic fell and more shopping was transferred online, a move likely to have been hastened by the pandemic. Consumers have grown more comfortable with online shopping “and some of that behavior will stick,” Dixons Carphone CEO Alex Baldock said.
“I think social distancing among shoppers will go on past the point when it is still mandated by government as people will still be nervous,” the electronics retailer’s chief said on a call.
By Deirdre Hipwell.
The rental platform saw its stock soar last week after predicting it would hit a key profitability metric this year. A new marketing push and more robust inventory are the key to unlocking elusive growth, CEO Jenn Hyman tells BoF.
Nordstrom, Tod’s and L’Occitane are all pushing for privatisation. Ultimately, their fate will not be determined by whether they are under the scrutiny of public investors.
The company is in talks with potential investors after filing for insolvency in Europe and closing its US stores. Insiders say efforts to restore the brand to its 1980s heyday clashed with its owners’ desire to quickly juice sales in order to attract a buyer.
The humble trainer, once the reserve of football fans, Britpop kids and the odd skateboarder, has become as ubiquitous as battered Converse All Stars in the 00s indie sleaze years.